Bank of China (Hong Kong) (BOCHK) and FTSE Group have announced the official launch of the FTSE-BOCHK Offshore RMB Bond Index Series, a series of indices measuring the performance of RMB-denominated bonds issued and settled outside the Mainland of China. The index series combines BOCHK’s unique positioning in the offshore RMB market with FTSE’s expertise in indexing. As well as offering a gauge of the market, the series provides a unique benchmark to meet the increasing global demand for RMB-linked fixed income products, such as exchange-traded funds (ETFs).

In this column I’d like to introduce what I rather inelegantly call the “linear link challenge”. In the real world of investing, pure ideas and strategies end up becoming horribly messy – we see a trend or a process at work and we try and find some way of ‘playing’ that via basket of shares or a fund. Cue the linear challenge. Is there actually a direct link between that process or change (i.e. investment theme) and an actual, easy-to-buy fund or group of shares? If there isn’t, we’re forced to rely on indirect ‘surrogates’ to make our play.

Barclays has launched European sector versions of the Shiller Barclays CAPE Index Family. The European versions serve as a complement to the US sector versions of the index which were launched in September 2012. The Shiller Barclays CAPE Index Family, developed jointly by Professor Robert Shiller, a Nobel prize-winning economist, and Barclays, uses the cyclically adjusted price-to-earnings (CAPE) ratio as a key driver for the valuation of sectors. The new indices offer European equity market exposure with a value bias, and are intended for buy-and-hold investors with a multiyear time horizon.

WisdomTree Investments, a New York-based sponsor and manager of exchange-traded funds, has reported net earnings of $15.0 million in the third quarter of 2013, compared to $4.5 million in the third quarter of 2012 and $12.2 million in the second quarter of 2013. Jonathan Steinberg, CEO and President of WisdomTree, said: “We continue to position the company for future growth”. As the only pure-play publicly traded ETF sponsor and manager, WisdomTree’s results are seen as something of a bellwether for the ETF industry.

Fidelity Investments, a leading global asset management firm with $1.9 trillion in managed assets, has made a significant and long-awaited play in the exchange-traded funds space with the launch of 10 passively managed US sector ETFs on the NYSE. With total expense ratios of just 0.12 percent, the new ETFs become the industry’s lowest-cost US sector ETFs, undercutting current segment price leaders SSgA SPDR and Vanguard. They are linked to MSCI sub-indices and offer exposure to the 10 equity sectors that make up the MSCI USA IMI.

Emerging Global Advisors (EGA), the asset manager to the EGShares exchange-traded fund line-up, has completed the transition of the EGShares Beyond BRICs ETF (BBRC) to track the FTSE Beyond BRICs Index, an index comprising 75% emerging market stocks and 25% frontier market stocks. Launched in August 2012, the fund previously tracked the Indxx Beyond BRICs Index, an index which only includes emerging market stocks.

Guggenheim Investments has announced that the Guggenheim BRIC ETF (EEB) will change its benchmark index to the BNY Mellon BRIC Select DR Index, effective October 31, 2013. William Belden, Managing Director at Guggenheim Investments, said: “Transitioning to the BNY Mellon BRIC Select DR Index will provide more representative exposure to the BRIC super region. We see this as an opportunity to track an index where the capitalization weights of the four countries – Brazil, Russia, India and China – are more appropriately weighted.”

DeltaOne Solutions, a supplier of ETF and index data, and Tbricks, a provider of automated trading systems, have confirmed details of a strategic alliance which combines Tbricks’ next-generation trading system with DeltaOne’s data management and analysis capabilities. The partnership provides a single point for analyzing and implementing, while enhancing and facilitating sourcing, pricing and trading of global ETFs and indices.

First Asset has launched two new factor-tilted equity ETFs – the First Asset Morningstar US Momentum Index ETF (YXM) and First Asset Morningstar US Value Index ETF (XXM) – on the Toronto Stock Exchange. Commenting on the launch, Barry Gordon, President and CEO of First Asset, said: “At First Asset, we are committed to developing solutions that aim to deliver superior risk-adjusted returns, and we are pleased to add these US equity ETFs to our product portfolio.”

S&P Dow Jones has licensed the S&P MILA 40 Index, an index tracking 40 of the largest stocks on Latin America’s MILA platform, to Horizons ETFs Group to serve as the basis for an exchange-traded fund listed in Colombia. The ETF, known locally as the Fondo Bursátil Horizons MILA 40 de S&P (HMILA40), will be listed on the Bolsa de Valores de Colombia (BVC) and will be the first Andean equity-focused ETF available in Colombia.